Carrefour - 2017 Registration Document

4 MANAGEMENT’S DISCUSSION AND ANALYSIS AS OF DECEMBER 31, 2017 Risk management CARREFOUR | 2017 REGISTRATION DOCUMENT 197 A detailed assessment of health risks is performed at Group level for local and expatriate employees. Coordinated by Executive Management, each country has an organisation to report information quickly in the event of an incident and deploy the appropriate resources. Human resource management As the largest private employer in many of the countries where the Group operates, the retail profession is based on human relations and employee engagement. In a highly competitive talent market with major demographic changes, the Group faces a challenge in attracting, retaining, training, motivating, compensating and developing employees and top candidates. As a responsible employer, the Group is implementing a major initiative adapted to these human resource challenges, presented in the Registration Document in Section 2 on Corporate Social Responsibility. Continuity, integrity and confidentiality of information systems Given that most of the Group’s activities and a number of its functions largely depend on information systems developed or administered by internal resources or outside service providers, any weakness in these systems could noticeably disrupt operations and result in material impacts on financial and operational performance, especially with regard to the ordering, cash handling and financial reporting systems. With information systems that are constantly changing and difficult to grasp as a whole, along with an increase in nomadic computing and cybercrime, information systems security is also a challenge, especially the protection of employee and customer data. The Group is implementing a number of measures to ensure continuity of operations and the protection of sensitive data. Data confidentiality, integrity, availability and traceability are guaranteed by an information management system. The following risks are covered: fraudulent use of data and systems, racist, sexual or offensive statements, discrimination or harassment, illegal downloads, illegal use of equipment, software or data, publication of confidential information, misuse of passwords, and use of personal, identifiable information. The Group Information systems department handles the development and consistency of all computer applications within the Group, as part of a coordinated effort to promote synergies while taking a forward-looking approach to incorporating technological developments. A dedicated team, which relies on a network in all countries where the Group operates, works to ensure information system security through tailored governance, shared standards and regular controls. The Group Data Security Committee manages the Group’s data protection system, which involves all employees in information security. It refers to the Group’s information security policy, which sets out the rules applicable to all Group entities. Control and valuation of assets Site quality and control of the Group’s assets are key factors for competitiveness and success. This involves anticipating and maintaining an optimal level of property holdings, while remaining attentive to the maintenance, management and value of the Group’s assets. The act of performing property appraisals may present a number of risks related to real estate and financial markets. With a significant portion of stores operated under commercial leases, the Group’s inability to renew them under favourable terms could impact financial performance. The same applies to inefficient or sub-optimal management of tenant relations at sites owned by the Group. For asset acquisitions, the cost of some acquisitions may require significant financial resources, particularly external financing which the Group cannot guarantee will be obtained under satisfactory conditions. For asset disposals, if the economic situation or the real estate market should worsen, the Group may not be in a position to dispose of its commercial real estate assets under satisfactory financial conditions or deadlines, if such should prove necessary. Lastly, with the Group also carrying out real estate development for certain sites, the risks related to this activity might incur delays or even cancellations of investment transactions, their completion at a higher cost than initially projected, or lower profits than those expected at the outset. Under the responsibility and coordination of the Executive Director for Assets, Development and New Ventures, who is also in charge of all Carrefour Property activities, each country implements an asset control and valuation policy tailored to its strategy. Cargo, a property company dedicated to the Group’s supply chain in France, ensures control over the logistics centres, which are key property assets, and over the real estate for some logistics premises. Cargo is 32%-owned by the Group alongside co-investors and holds around one-third of the Group’s distribution centres in France. The Group manages and is the sole tenant of Cargo.